No need to beat yourself up if your cryptocurrency portfolio exhibited less than stellar performance in May. Even the professional traders employed by the big hedge funds active in the space have suffered double digit declines during the previous month.
Also Read: Bitcoin in Brief Monday: From New York to Historic Istanbul Market
Crypto Hedge Funds Show Weak Performance in May
Data provided by three different industry trackers reveals that crypto hedge funds achieved considerable negative growth in the bear market of May 2018.
The Eurekahedge Crypto-Currency Hedge Fund Index estimates the losses made by crypto funds to have been 11.66% during May, and 2018’s year to date (YTD) performance to be -22.71%. Market analysis firm, Hedge Fund Research Inc. (HFR), estimates crypto funds to have suffered a decline of 15.48% during May, bringing the YTD performance to -33.3% per the company’s HFR Blockchain Index. And the Cryptocurrency Traders Index of hedge fund data specialist Barclay Hedge shows that the performance of those it is tracking dropped by 19.09% in May, and down 34.57% YTD. The differences between the three benchmarks are due to each following a different number of funds.
The weak May figures are in sharp contrast to the strong rebound performance seen the previous month, as Eurekahedge reported an increase of in 52.83% and Barclay Hedge a similar 44.86% in April 2018.
Barclay Cryptocurrency Traders Index May 2018
Reasons to Remain Positive in the Long Term
Despite the setbacks in May and high volatility from month to month analysts believe there are reasons to remain optimistic such as the recent SEC statement and new institutional money coming in. “I expect the crypto markets to remain volatile for the foreseeable future,” said Henri Arslanian, cryptocurrency lead for Asia at PwC.
